Faulu Microfinance Bank has disclosed that it has received over Ksh 900 million from its parent company, Old Mutual. The investment is aimed at strengthening its operations and reposition its business model for long-term growth.
The investment comes at a time when Faulu aims to grow its digital banking offering and realign its distribution channels and human capital to drive sustainable growth. This is part of a strategy by the Bank to turn around its performance by becoming a leading traders bank and digital finance provider.
The Bank has also made a strategic decision to review its distribution channels in line with the new operating business model, supported by an active agency network of more than 70. The microfinance bank will also be growing its SME support offering, as well as implementing an enhanced distribution network.
Commenting on the investment, Faulu Microfinance Bank CEO Julius Ouma commented, “Over the last 18 months, we have made significant investments in enhancing our digital capabilities. We are eager to become a leader in the digital finance space. Many of the services that the bank offers are now available online, and our intention is to make our services more accessible for our customers. We will also be leveraging the support of our Holding company, Old Mutual, who have committed over Ksh 900 million towards these operating model enhancements, to reposition Faulu as the digital bank of now!”
On his part, Old Mutual Holdings CEO Arthur Oginga added, “With this change, we are both enhancing the Faulu service offering to our existing and future customer network, as well as positioning the business to deliver more value sustainably. Faulu has the full backing of Old Mutual in these endeavours, and we are confident that the refocus will drive shared value for all our stakeholders.”
Established over 30 years ago, Faulu has become one of Kenya’s most recognizable financial services brands. The Bank, which forms part of Old Mutual East Africa Holdings Group, has initiated the business refocus in response to growing customer demand for digital services, as well as to reduce costs and become more competitive.